Occidental Petroleum announced this morning the completion of its $55 billion acquisition of Anadarko Petroleum, including debt assumption, Kallanish Energy reports.
Billionaire disident shareholder Carl Icahn admitted soon after the deal closed he sees the transaction as one of the worst he’s ever seen. He continues to push for four Oxy board seats, and admits he was willing to lend billions to Oxy president and CEO Vicki Hollub to help finance the deal, rather than what he calls as a sweetheart deal made between Oxy and fellow billionaire Warren Buffett to help finance the deal.
“With Anadarko’s world-class asset portfolio now officially part of Occidental, we begin our work to integrate our two companies and unlock the significant value of this combination for shareholders,” said Hollub. “We expect to deliver at least $3.5 billion annually in cost and capital spending synergies and the focus of our board and management team is on execution to achieve the promise of this exciting combination.”
The closing of the deal follows approval of the transaction by Anadarko’s shareholders at a special meeting held earlier today. More than 99% of the shares voted at the meeting were in favor of the Occidental merger agreement.
Anadarko shareholders are receiving $59 in cash and 0.2934 shares of Occidental common stock per share of Anadarko common stock in the transaction.
Speaking on CNBC’s “Fast Money Halftime Report,” (monitored by Kallanish Energy), Icahn railed on Hollub, saying since she took the held at Oxy (April 29, 2016), the company’s stock has lost $23.7 billion in value — a 41% drop.
He also accused Hollub and the current Oxy board of wiggling out of a mandated shareholder vote, which would have been needed without the Buffett financing.
“She (Hollub) ran to Omaha (Nebraska, to meet with Buffett) and he did the deal in 90 minutes,” Icahn said.
When asked to reveal who the entity was who Icahn previosuly said was willing to help finance the Anadarko deal, Icahn at first deferred, but then said “Okay, I’ll admit I would have given her financing.”
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